On Friday, state-of-the-art meat-packing company Hilton Food Group posted yet
another "steady as she goes" update. This is good news but the
shares are now a hold.

The company has consistently performed throughout the recession and, yet again, everything is going as planned. Hilton said it had performed to expectations in the year to January 2, with strong volume growth, particularly in the Netherlands and Central Europe.

In Sweden, the economy has shown signs of recovery over the past few months and Hilton said this had translated into higher sales. A new factory in Denmark will open in the second quarter.

Current consensus forecasts for the year see earnings per share rising 8pc in 2010, with growth accelerating this year to 10pc and 14pc in 2012. The company has a strong balance sheet, with little debt and it is very cash generative so it should be able to fund any opportunities for expansion that arise.

The shares are trading on a December 2010 earnings multiple of 12.5 times, falling to 11.4 in 2011. They are up 69pc since their recommendation on April 12 2009, compared with a FTSE 100 up 50pc. The rating is hold, as the valuation looks full for now, given the weak consumer backdrop.